Wealthsimple made a substantial change to the Wealthsimple saving account products it offers to clients in June 2019.
If you have been using the Smart Savings account that it launched in 2018, you might remember that Wealthsimple rebranded that into Wealthsimple Save while retaining the Smart Savings accounts.
People who had Smart Savings accounts could keep the account, and open Wealthsimple Save accounts as well. However, it did not allow opening new Smart Savings accounts.
In January, Wealthsimple changed Wealthsimple Save into Wealthsimple Cash and implemented a few operational changes.
The platform decided to make the change to align with its growing business. However, the changes will not affect any aspects important to you as a customer for the platform. The interest rate is still transparent, with no low balance fees, no account minimums, and unlimited free transactions with Wealthsimple Cash.
I will tell you about Wealthsimple Cash and Wealthsimple Smart Savings in detail to give you a better idea.
Wealthsimple Cash (The New Wealthsimple Savings Account)
Wealthsimple Cash is a Wealthsimple savings account that lets you earn interest on your cash deposits. You can use the card made available to you for spending money, similar to how you might use a debit card. There are no monthly fees for Wealthsimple Cash or the card.
You do not have to pay monthly fees for account maintenance, and as mentioned above, no fees for a low account balance. Additionally, you also do not need to worry about foreign exchange transaction fees with Wealthsimple Cash.
Wealthsimple revolutionized how Canadians invest with its robo advisor product and introducing Wealthsimple Trade – I’ll discuss Wealthsimple Trade later. Here’s a better look at the new Wealthsimple savings account: Wealthsimple Cash.
How it works
Wealthsimple Cash works by linking your bank account and transferring funds to the Wealthsimple Cash account. You will receive a Visa debit card that works anywhere Visa is valid. You can use the Wealthsimple Cash card like a regular debit card, make withdrawals, and send Interac e-Transfers or pay your bills without additional fees.
Some of the critical features to like about Wealthsimple Cash are:
- Account Fees: Zero
- Account Minimum Balance: Zero
- Interest Rate: 0.90%
- Fund Withdrawal Time: One business day
- Interac e-Transfers: Free
- Foreign Exchange Transaction Fees: Zero
- Joint Accounts: Yes
- Mobile app: Yes
- Apple and Google Pay Compatibility: Yes
The high-interest rate of 0.90% for deposits in your account is a substantial benefit you stand to earn with this Wealthsimple savings account. Whatever money you do not use keeps letting you earn more through the interest rate. This is a flat 0.90% that does not vary like it did in a Smart Savings account.
Having a Wealthsimple Cash account is entirely free of charges. Wealthsimple does not charge you for day to day banking. There is no 0.25% fee for Wealthsimple Cash, unlike Wealthsimple Smart Savings, which applied to Smart Savings accounts.
A Wealthsimple Cash improves on its Smart Savings account when it comes to making withdrawals. Where it would take two to four business days to withdraw amounts from your account, Wealthsimple Cash allows you to withdraw your deposits in one business day.
The way it operates, Wealthsimple Cash is more than a savings account. It is a unique blend of the best features from a savings and spending account with a competitive interest rate. It allows you to do more with your deposits than what most other savings accounts allow without paying additional fees.
Wealthsimple Cash also comes with a mobile app that is compatible with both Apple Pay and Google Pay. Being a leading innovator in the FinTech industry, Wealthsimple’s mobile app allows you to perform a wide range of financial tasks through one app. This includes opening different types of accounts, setting up automatic deposits, adjusting your investment portfolio, and much more.
Wealthsimple Cash also insures your funds deposited with the platform through the Canada Deposit Insurance Corporation (CDIC) for up to $1,000,000.
If you want to find out more details about Wealthsimple as a whole, I would suggest checking out my Wealthsimple Review right here. I think it will give you all the information you need about the robo advisor.
Special offer: get $10,000 managed for free at Wealthsimple Invest here
Wealthsimple Smart Savings (Discontinued, Legacy Only)
While Wealthsimple no longer offers new Smart Savings accounts, this Wealthsimple savings account was quite popular. The legacy accounts are still operational. I will walk you through the essential features of the Smart Savings account. It might help you see the similarity with Wealthsimple Cash and the key differences.
Wealthsimple Smart Savings gives you an interest rate of 0.65% on the first $100,000, and the rate varies on amounts higher than that in $100,000 increments.
For Example: Mark has an account balance of $200,000 in his Wealthsimple Smart Savings account. The interest he earns for his deposit will be 0.65% for the first $100,000. For the next $100,000, it will be on the second-highest interest rate.
Wealthsimple calculates the exact interest of your account based on the total balance. You can view the details of Wealthsimple Smart Savings in detail here.
Other valuable features
- Zero Fees: Wealthsimple’s Smart Savings comes with unlimited free withdrawals and no hidden fees.
- Deposit Insurance: The funds you deposit in your Wealthsimple savings account have coverage by the CDIC for up to $1,000,000.
- Joint Savings Account: You can open a joint account with your spouse to enjoy the high-interest rate on up to $100,000 collectively in both accounts.
- Automated Savings: You can automate your savings using the Wealthsimple Overflow feature.
The Wealthsimple Cash offers you these features and more by creating a hybridized savings and checking account to build on the convenience and success of its Smart Savings accounts.
Besides its robo advisor product and its exceptional savings accounts, Wealthsimple has also ventured into the world of online discount brokers. Many Canadians prefer to use the set-and-forget convenience of robo advisors to watch their investments grow. However, if you plan on taking on self-directed investing, you can consider opening up a Wealthsimple Trade account.
Wealthsimple Trade is the first and only Canadian platform that allows commission-free trading for stocks and Exchange-Traded Funds (ETFs). If you are interested in learning more about the discount broker offered by Wealthsimple, you can check out the details in my Wealthsimple Trade review here.
You can also get $10,000 managed for free with this special offer at Wealthsimple Invest here.